Crude Oil Fundamental Analysis August 20, 2013 Forecast

Analysis and Recommendations:

Crude Oil eased by 62 cents to trade at 106.67 as traders took advantage of the surge in prices to book profits. Also tensions eased in Libya as product and exports start to return to normal after the work stoppage. Protests still exist by headway is being made in labor negotiations. In the last week, Nymex crude oil prices witnessed gains to the tune of 1.6 percent, with prices testing a high of $108.17/bbl. Geopolitical tensions, declining inventories and positive economic data from the Euro Zone, UK and the US are additionally acting as a supportive factor. Clashes in Egypt have raised fears of a supply disruption from the Middle East. Due to escalation in the geopolitical problem in the Egypt, oil prices are trading at a premium and until these tensions ease, the commodity will continue to trade higher.

While this is supportive, a host of positive economic indicators from the eurozone, UK and the UK have increased a recovery in the advanced economic and this has come in as a relief to the world markets amid a weakening economic scenario in the emerging and developing economies. Saudi Arabia indicated that it will not increase production on the back of slowing demand concerns. As planned, the oil producing country will not boost its output capacity to 15 million barrels a day on the back of rise in shale production in the US.  Oil production in the US has increased to 7.56 million barrels a day during the week ended 19^th July’13. This is the highest increase in output since December 1990.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Economic Data August 19, 2013 actual v. forecast

 

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